Bridges closes sixth property fund at €512m

Bridges has closed its sixth property fund, Property Alternatives Fund VI, exceeding its £400 mln (€466 mln) target by raising over £440 mln (€512 mln), including co-investment. 

Bridges

This strong demand from both UK and international institutional investors highlights Bridges' leadership in sustainable real estate investing.
Fund VI will focus on sustainable property investments in the UK and Europe, particularly in growing sectors like housing, healthcare, and logistics. Bridges' approach emphasises low-carbon, impact-driven assets, which appeal to both occupiers and investors, allowing them to achieve strong financial returns alongside positive social and environmental benefits. Recent successful exits, returning over £150 mln (€175 mln) to investors this financial year, demonstrate this effectiveness.
Since launching its first Property Alternatives fund in 2009, Bridges has raised £1.3 bn (€1.5 bn) across six property funds, establishing a strong track record in sustainable real estate. They have consistently shown that investing in sectors with unmet needs can lead to both strong financial performance and positive impact, such as providing affordable homes, low-carbon industrial buildings, and specialized housing for seniors.
Fund VI has already made 10 investments in these specialist sectors, including co-living projects in London, a low-carbon industrial site, elderly accommodation, and healthcare facilities. The fund's investors are a diverse group of institutions, including Fidelity International and several pension funds, many of whom are long-term supporters of Bridges, reflecting their confidence in the firm's expertise and the increasing appeal of sustainable real estate.
Simon Ringer, partner & head of Property Funds at Bridges Fund Management, said: “Over the past 15 years, we have shown that by investing in areas where there is a favourable relationship between needs-driven occupational demand and restricted market supply, we can deliver competitive financial returns alongside positive social and environmental impact. As demand for sustainable real assets continues to increase among both occupiers and investors – driven by positive regulatory tailwinds – we see compelling opportunities ahead in our specialist niche sectors.”
Vivian Liu, private markets portfolio manager, Fidelity International, said: “Our clients are increasingly looking for access to attractive, sustainable investment opportunities within private markets. Bridges’ specialist real estate strategy has a proven track record of identifying and executing property investments where sustainability can be a clear driver of value creation – so Bridges Property Alternatives Fund VI was an obvious choice for our portfolio.”
Ian Sandiford, head of Alternatives, Border to Coast Pensions Partnership, said: “Building on the significant investment our partnership has made in the UK to date, our commitment to Fund VI enables us to pursue sustainable investment opportunities with attractive growth potential whilst meeting the growing need for housing and healthcare real estate, all on behalf of LGPS Partner Funds.”
Scott Anderson, investment manager, Environment Agency Pension Fund, said: We’re excited to be partnering with the Bridges team for a fourth investment. At this time of unprecedented environmental and nature-related challenges, the importance of expert-led sustainable investment has never been greater.”
Bridges received legal counsel on the fund formation from Osborne Clarke.